3M Co. (MMM) issued mixed third-quarter results on Thursday, with earnings above and sales short of expectations, while the maker of Scotch Tape and other household and industrial products cut its yearly earnings forecasts.
The company’s net earnings rose to $2.72 per share from $2.58 per share in the year-ago period, beating the $2.52 consensus estimate from a Capital IQ poll of analysts.
But sales fell to $7.99 billion from $8.15 billion, coming in below the consensus for $8.2 billion. The period marked a 5.7% sales decline in its safety and industrial unit and a 4.4% fall for the transportation and electronics segment. Health care sales, meanwhile, rose 4.7% and the consumer group increased by 1.7%.
“While the macroeconomic environment remains challenging, we executed well and built on the progress we made in the second quarter,” Chief Executive Mike Roman said in a statement. “We continued to effectively manage costs and reduce inventory levels, while generating strong margins and cash flow.”
Shares of 3M fell by more than 4% during the session as it cut the full-year 2019 adjusted and net earnings forecasts. 3M said its August purchase of wound-healing products maker Acelity would dent earnings by $0.15 per share.
The company now foresees adjusted per-share earnings of $8.99 to $9.09 from the previous projection of $9.25 to $9.75. The new range excludes the impact from “significant litigation-related” charges, deconsolidation of its Venezuelan subsidiary, and the divestiture of its gas and flame business. On a net basis, 3M is looking at earnings of $8.20 to $8.30, down from its previous outlook of $8.25 to $8.75.
Meanwhile, 3M reduced its full-year organic local-currency sales guidance. It projects a decline between 1% to 1.5% compared with its previous forecast of a decline of 1% to growth of 2%.
This post was originally published on Health Opinion